intel is up 1.5%.rts that it could be tied by a competitor such as qualcomm.guld this morning. broadcom is not buying it, but there was news that apollo global is in -- eyeing an investment. let's talk about the rebalancing that happened over the weekend and is in play today for the s&p 500. ed: palantir is getting a spot on the s&p 500, a milestone the data analysis giant has been after. palantir cofounder and ceo alex karp has had a love-hate relationship with wall street. lizette chapman took a deep dive into the story and joins us now. i have spent a lot of time with dr. karp, but what were you trying to do with the profile in the magazine? lizette: this has been a longtime goal of karp's and the company's. and retail investors who have created this massive following for palantir and all things karp , calling him daddy karp and the like. and this irreverence he has carried through and promised he would when he went public. and he has carried it through to today. caroline: the best bid is if you scr

that intel rebuffed. all according to a single source. when you woke up to that news what was your reaction? fiona: intel has definitely been in the news this week. while this is a stock that is really in the doldrums, has been struggling, it has been approached by several suitors. this is just the latest. it seems a little murky and unknown where this might be going. as far as we know, it's not moving forward yet. i think if we consider what has happened to the valuation of intel, it is down in the dumps right now and it doesn't look like the turnaround plan is going to do the job he needs to. it does mean intel remains vulnerable. caroline: we are showing a year to date chart down 52%. it is extraordinary that the icon, one of the icons of tip--- icons of chip-making would ever be discussed as a merger. how sharp is that on your investor's minds that the current move of ai is so swift you have to be on top of it? fiona: that is a good point. if we think about where intel was compared to its peers, it wa

would that solve some of intel's problems? >> again, i don't know because for me, the -- and i'm not going to -- i'll be careful what i speculate here. for me the biggest issue what really happens to those manufacturing [ inaudible ]. with the fabs this becomes difficult because they're not running well now. i don't know that qualcomm can fix them or run them better than intel can. i think any deal that would involve those manufacturing assets will no longer be available is difficult for me. that to me is the biggest unknown on top of a lot of others here. i don't know what happens with those assets. >> we're going to let you go. thanks for phoning in. stacy rascon of bern stein. guy, intel gave up the gains initially on the back of this report. >> we have to get what do they call that when you do housekeeping things. happy birthday day dan nathan number one. >> thank you. >> wednesday was national cheeseburger day. i don't know if you knew this. >> do you like cheese burgers. >> jon fortt got me thinking about that. the more

we give our example israel intel is our leading semiconductor company and israel, i mean, intel is really in israel only companies at. its yeah, they invented the end degraded circuit but the integrated circuit and the microprocessor but they didn't succeed and supporting intel in its early years and its early years intel was sustained by nonvolatile memory. those are flash is what we call flash memory cell e promises they were that were invented by froman who was an israel who was one of the key figures in the early intel group and all of profits for the first several years of intel from these nonvolatile memories. then establish their leading wafer fab, which is intel's chips. leading edge chips are made you factor out god and of israel and many of their leading microprocessors were designed that there israel design center. of course intel, was an american company. it's also an israeli company. and and google it's, you know, google maps and everything. earth, waze is an is israeli company. that was by google and which makes possible all the features of google maps and google as a side c

we take a look at intel shares. we see intel up about 6%. and that company is the one i'm speaking of. obviously, has been in the shadow of all of the ore chip makers at the forefront of the new revelation. nvidia comes to mind first and foremost, but it's broadcom, it's some of these other chip stocks that have gothen a boost. this one has not. we'll continue to follow this story. we'll take a break in a moment. i want to send it to pippa stevens for a look at the biggest names moving into the close. >> constellation energy surging to a new all-time high. the best performer in the s&p after announcing it will reopen the nuclear power plant selling awe of the power to microsoft as part of an agreement to power the tech giant's data centers. constellation shares have doubled this year as independent power producers benefit from rising power demand thanks to electrify indication, reshoring and data centers. today's announcement the lifting shares to a record high. vistra is the top stock outperforming nvidia, up more than 100%. >> thank you. w

intel has so far declined to comment.has been one of the worlds biggest chip—makers but it's been going through a rocky period with the share price falling by nearly 60% this year alone. chip expert malcolm penn explained some of the pressures intel faces. it really is a riches to rags saga _ it really is a riches to rags saga really _ it really is a riches to rags saga really. it— it really is a riches to rags saga really. it started - it really is a riches to rags saga really. it started a l it really is a riches to rags i saga really. it started a few years — saga really. it started a few years ago _ saga really. it started a few years ago when _ saga really. it started a few years ago when intel- saga really. it started a few years ago when intel lost. saga really. it started a few. years ago when intel lost the technological— years ago when intel lost the technological leadership - years ago when intel lost the technological leadership and | technological leadership and handed _ technological leadership and handed ov

intel is behind on that. that's why apple ditched intel.alcomm can expand the pc footprint more than the a.i. we don't know where it is. qualcomm is not necessarily producing the chips. it is a mobile first company. >> this is like a back doorway of getting chips act money. what could possibly happen? i can't imagine people in washington are happy with this. sure, no problem. we'll change the name on the check we're writing. it's taxpayer dollars. >> the chips act money is a bet on the part of the business that intel hasn't proven it can do. the making of the chips. >> the idea to say we're doing this for an american company and american tax dollars and yyou promised this and some other company is taking it over for this. still, it seems like this is the problem with governments really getting involved in picking winners on this stuff. you lose access. >> we know that the current regul regulation doesn't like these deals. i know you were talking about lina khan earlier. she likes to see the companies drive on their own and go public. i can

intel is in line as it pulls out.ompany is been in dire financial straits and hosted a pretty disastrous earnings report at the beaning of last month. now while the chipmaker says this is moved faster, of by demonstrations maintaining the stance it has the entire time because that's up luminary agreement. and even then intel has stated key milestones. caroline: we are anticipating hearing from pat gelsinger later today at a city event. working hard to address certain issues. what is intel likely to do next to come together and decide whether they build whether the need to get a place to get the money. >> intel has a board meeting in mid-september and that's when you'll see company executives considering a range of potential options including spinning off their manufacturing division or pausing or scaling back global factory projects. the biggest of the facilities are an expansion of the arizona foundry project. biden has called a quote unquote field of dreams. it's pretty safe to say if intel were to pare back its u.s

he says don't buy intel at all, actually.s here to make his case and tell us which deal would make sense in the semi space. plus this stock is up more than 6% today as the u.s. nuclear renaissance takes shape. every time i turn around there's a new headline. we have the name and the news behind today's move and an exclusive interview with the ceo ahead. that's our mystery chart, by the way and nike, starbucks, boeing all have new ceos, but is it enough to buy the stocks. tim seymour is here with the trades and he feels so strongly about one name and one ceo needing to leave that we're bringing you a special edition of three buys and a bail today with a boot as a bonus. let's begin with today's markets and dom chu has our numbers. >> i can't wait to see what the bon bonus is going to be. it's fractional, and it is positive. well, just now in the last minute the dow industrials have been slightly negative. we are still down 18 points and that's 42,045 for the blue chip index and the broader s&p 500 is still holding above the 57

first, we start off with intel. the stock is jumping almost 8% after announcing an expanded partnership with amazon web services saying it would create a separate entity for its foundry business that would allow it to raise outside funding on top of a 6% gain during the regular session after the company solidified a $3.5 billion deal with the pentagon. >> this is a big announcement today. amazon has been a partner of intel for many years, but we've just taken it to a whole new level. obviously, the foundry agreement for the ai networking is a big deal. and amazon is a discerning customer. they sent us through our paces to prove we're up to snuff, and it's up to snuff. >> jon joins us with more on the story. what exactly does this mean? whatis the outline of the partnership? >> there are a lot of different pieces, new stage throughout the day. but on this partnership specifically, intel and aws already had a relationship. it is more based on existing processes. so manufacturing processes that intel is already comfort

the headlines crossing about a partnership with intel between intel and amazon.ws to make a custom-made ai chip and premarket intel is getting about. we will continue to get the details on that story. the consequences for the future of intel given that stock is down about 50% year to date. let's go to singapore. standing by with a check on the markets in asia. avril: yeah, it is really about the fed and the first rate cut this cycle. how markets seem to be leaning more heavily towards the 50 basis point move. that is a tailwind for equities on the hang seng. seeing a bit of green but the pain is coming through for japanese equities that have come back from a long weekend and succumbing to what we saw on the yen a-day ago as it rallied 9.6 against the greenback the yen has given up most of the gains but for some of our strategists, they are as much as 2% on the nikkei and the topics hit by the export related needs and chip sox reflects how skittish reflectors are about how we will get from the federal reserve. how that could turbocharge the japanese currency and i

and where is intel?you've been following the chip business for a couple of decades, so when you see -- there's a sense that the ai bubble is bursting a little bit. just over the weekend, more reports about whether co-pilot is all of that effective. is that starting to affect the demand we could potentially see, whether it's for an arm you like for nvidia. the shares are down today and i wonder if there's this reset, we stockpiled a ton of these chips, but what's going to happen now for the next couple of years? >> i think you have a good point. we don't really know. we're crying before we're hurt is what we're doing as investors. we didn't know how much chips were going to be used, and we still don't know how many chips will be in demablnd. talking with investor ore yem -- oriented people, i think they expected the whole of the united states to be one big data center. i'm talking a little bit in hyperbole. i think we're coming back to normal expectations where we have a handful of data centers that are d

ed: reiterate as well that neither intel nor qualcomm commented on that report.he other piece was that apollo, which has an existing relationship with intel and strategic in the sense they coinvest it in a specific project. why isn't intel attractive to a name like apollo? it's a duration bet. it's infrastructure. in the world of ai it is building something physical and waiting for the payoff later. phil: this is long-term generational investment. funds like apollo take an extremely long-term view beyond the more short-term nature of the public market. when we look at m&a and the trends we have seen in the last year, activity is up quite meaningfully after two low years. we are seeing strategic much more active. we advised on ibm. not as transformational necessarily as intel but we are seeing strategics be more proactive as it relates to growth vertical adjacencies. private equity is on dislocated public market valuations. but we have not seen so far is the huge number of private companies with high watermark valuations in 2021 starting to come to market. time re

intel needed to help the stock and sentiment. so i think on one side, it's at least an affirmation that, yes, they have this foundry business. but basically it's not, we don't really know enough on the volume and the timing of when it would actually drive revenues for them, and i think now the stage is set for them to hopefully go out and start adding more customers to the mix, whether that's the biggest and best would be nvidia, but they could get others as well. and that's going to be a very steep hill to climb, but they got to start somewhere. and that's what today was. caroline: big and it's best, nvidia. are investors still feeling that that's where they should be allocating the chips more broadly, chip making where she should be putting money in this market? jordan: that's a good question. i think people are mixed on how much more exposure to semiconductors they want and need at this time. the group, semiconductors that is, is extremely sentiment-driven. so when it's performing well, it's got the momentum, people are genera

ii we are seeing for intel. regulatory hurdles. are you in that camp?— through regulatory hurdles. are you in that camp? probably less than a 1096 _ you in that camp? probably less than a 10% chance _ you in that camp? probably less than a 10% chance it _ you in that camp? probably less than a 1096 chance it will - you in that camp? probably less than a 1096 chance it will get i than a 10% chance it will get donein than a 10% chance it will get done in the current form. intel will have to break itself off and sell pieces to two. i think the days of seeing intel in its current state are probably over. this will be the clock struck midnight and they need major changes one way or another. major changes one way or another-— another. so this is forcing restructuring, _ another. so this is forcing restructuring, so - another. so this is forcing restructuring, so what i another. so this is forcing restructuring, so what is. another. so this is forcing i restructuring, so what is going through the ceo's mind? he’s throu

intel. intel shares moving higher 4% on the news that apollo global is looking to invest. and dell enter the s&p on the laggard side. entering in the red. >>> we get fresh look at the housing sector with the latest look at home prices and sales. mortgage rates are hovering at the lowest level in two years. 30-year fixed rates holding above 6%. ticking up slightly last week in the fed rate cut announcement. now looking for more cuts to ease the cost of borirowing mor. let's bring in the chief economist. >> thanks to be here, frank. >> let's talk about the moves in the mortgage market. slight uptick, but the expectation is mortgage rates will go down. how does that impact the housing market going forward in your mund? mind? >> think i we may see uptick since the market is priced ahead of the fed with the rate cuts we are going to see this year. fro there is room for those to move together. expectations for the fed to cut are very high right now. given the improvement we have seen, it is a substantial change from october. if you look at the cost of the affordable price, those

well, intel has been having some real challenges amid a big run-up for most chipmakers but to date, intelm. of course qualcomm best known in the past for making the chips that go into smartphones, but they have expanded broadly, working on a.i. chips, not to mention chips for vehicles. so they have really been on a good run themselves. qualcomm at the moment intraday is falling about 3% on that news. we'll continue to watch this fast developing story. democratic presidential candidate kamala harris has taken the stage right now at a campaign event in atlanta, georgia, looking at live pictures from there. the president is at the cobb energy performing arts center and is expected to focus her speech on repro ticketmaster ever rights amid the battleground states abortion restrictions. she also just said she would like a second debate with donald trump. meanwhile, gop competitor trump has no events scheduled today but will return to the campaign trail tomorrow at a rally in wilmington, north carolina. the next debate that is on the calendar is october 1 but it's the cbs vice presidential deba

why wouldn't they just buy intel and do it through intel?n the past few years, nobody is betting on that turnaround. the question is, does intel have certain pockets that fit strategically with some other company? the pc business is still attractive, generates six to $10 billion in free cash flow. the data center is losing business to nvidia. the foundry business keeps losing money. maybe intel is better off being split in a way that makes sense. the foundry business could be useful down the line, but the problem is it is losing $20 billion in capex, requires a lot of upfront investment. nobody has the patience to do that with intel. jonathan: qualcomm, apollo circling for a cash ingestion -- injection. mandeep: it has to be a consortium. i cannot imagine qualcomm buying everything. if they are, they will sell some assets to begin with. that is how you could conceive a deal where qualcomm would want to own certain parts of intel. jonathan: i appreciate your time. mandeep singh on bloomberg intelligence. intel the one to want to watch going i

investors are seeming to like that both for intel and amazon. vonnie: we have a long day still to go amazon. thank you for that. much appreciated. boeing isn't moving much at the moment. investors are looking to see the outcome of today's scheduled talks between the union representing 33 thousand boeing employees and the embattled company. for more on the developing story we are joined by bloomberg reporter dooley johnson -- julie johnson. what do we anticipate out of today's mediation round? julie: this is the two sides heading back to the table. i would not expect any bombshells anytime soon. it is just restarting the process trying to reach some sort of agreement. around -- that will satisfy boeing striking workers. it's a big one. vonnie: rbc capital market says boeing will burn about $500 million each day that workers are on the picket lines. how much can it put aside for a strike? does it need an agreement with workers? julie: it will be interesting. i have seen estimates also as low as $100 million. so it is unknown, the financial hit to

intel has so far declined to comment.60s, intel is one of the worlds biggest chip—makers, but it's been going through a rocky period with its share price falling by nearly 60% this year alone. chief expert malcolm penn explained some of the pressures intel faces. this really is a riches to rags saga — this really is a riches to rags saga it_ this really is a riches to rags saga. it started a few years ago — saga. it started a few years ago when intel lost their technological leadership and handed over that pattern to tsmc — handed over that pattern to tsmc and allow them to steam ahead — tsmc and allow them to steam ahead from the technology. if you lose — ahead from the technology. if you lose the technology race and give _ you lose the technology race and give up on that it it put you — and give up on that it it put you back_ and give up on that it it put you back on that setting. they were _ you back on that setting. they were going through this period of trying — were going through this period of trying to recapture t

i easy at intel corporation and intel for more than 30 years. an assistant general counsel commercial operations. the committee, i'm going to ask you rise. the truth, the whole truth and nothing but the truth. >> thank you again please begin your testimony. >> thank you for the opportunities. vice president of the government affairs and we appreciate the focus on semiconductors and we are working hard to prevent. we have about 26000 employees and 75000 different parts to approximately 125,000 customers. most of our work is focused on civilian technology, a.i. is a proud partner of the u.s. department of defense and protects the united states and our allies. our products are intended to positively impact our planet. focus on the weapons system, let me be clear, we are horrified by russia's invasion of ukraine. we have a legal team member of the highest levels of adi ensuring their use as intended not just legal or commercial model, it is personal. the version of our products are morally wrong and against our company's values and we are trying to

you're with intel; right? >> yes, that's correct. >> saying the letter was only written to comply with u.s. law and now saying you don't have a substantiation at all. is that really -- stance on it at all. is that really your position? >> senator, i'm not in a position to make that statement. >> you're not in a position to condemn forced labor in china? >> i would condemn forced labor but not an ebbing pert to weigh in if china is engaging in such actions. >> you have billions of dollars of investments in china ande you're investing in chinese artificial intelligence. you're investing in chinese semiconductors and making who knows how much moneyn in china but you. won't say that the weeingers being exploited is wrong? what is wrong with you people? that's not rhetorical. i can't believe i'm hearing this. >> personally, i believe slave labor is wrong. >> personally, good, i'm glad we got that far. why is your company associating itself with this?nv >> i'm not aware my company is associated with it. >> i cannot

jeff rittner of intel. the chief trade officer and vice-president of international trade group, itg. has worked at intel for more than 30 years. shannon thompson of texas instruments is the vice-president and assistant general counsel for commercial operations at that company. worked directly and indirectly for more than 20 years. as is our custom on the committee i'm going to ask you to rise and be sworn in. do you swear that the testimony that you're about to give is the truth, the whole truth and nothing, but the truth so help you god? wonderful. thank you again and miss stout, if you would please begin your testimony and we'll go down the line. >> chairman blumenthal, ranking member johnson and members of the subcommittee. thank you for the opportunity to speak with you today. my name is michelle stout. i am vice-president of global trade compliance and government affairs at analog devices, also called adi. we appreciate the subcommittee's focus on the illicit diversion of semiconductors which we're als

what are these companies see in a potential investment in intel? ed: intel needs cash.has a plan and that plan orients toward foundry but it is capital-intensive. they have history with apollo. qualcomm is a surprise. katie: it is interesting like you said, intel needs cash. just how badly do they need cash? if we don't see qualcomm or apollo or someone else step up, but would that potentially mean for this company -- what would that potentially mean for this company? ed: the design side of chips is 70% of their revenue. they have scaled back where the losses are but they still have to grow it, you need scale and their aim is to win third-party customers. they have to be selective and where they build new factories, how they handle capacity for clients and i think these two stories are competing against another -- one another to answer how they move forward in that respect. katie: great stuff. i know you've been all over this. that does it for bloomberg markets. this is bloomberg. ♪ where ya headed? susan: where am i headed? am i just gonna take what the markets gives m

we covered intel.adlines coming out of commerce this morning about autonomous software in driving. micron is going to give us earnings later in the week. opening bell coming up in five minutes. >> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. >>> instead of inflation, are you contending that it's greed-flation, that these monopolies are deliberately hiking the prices? >> so, there's a lot of discussion about what's driving the inflation, and we've actually seen some executives boast on earnings calls about how inflation is great for their bottom line. >> they say that? >> they have said that publicly, yes. >> what about the argument that when companies merge, prices often come down because of efficiencies, scale? >> but even if those efficiencies arise, if the company's not checked by competition, it won't have an incentive to pass those benefits on to the consumer because those consumers may not have anywhere else to go. >> ftc ch

it's something intel has not specialized in in the past. it's tens of billions of dollars that intel has been spending on it at a time when its core business has been challenged by the shift in attention away from cpus which intel specializes in, more to gpus being used in a.i. for accelerators. we'll see what intel further has to say about this and more when pat gelsinger joins us, broadcasts exclusive. for now intel stock moving higher on the additional up to $3 billion from the federal government under the chips act for the secure enclave program. >> obviously i think the concern here is for the military, that they're not reliant on chips from china and that kind of thing. last hour, our guest was buying intel shares buthe wanted to hear the company say we're not trying to be number one. we're happy to be in a niche and area of demand especially from the u.s., perhaps from the government, that can be steady and consistent, and that that would be enough for shareholders at this point. >> intel's got a long climb to be number one either in

what intel is up against as they defend their territory.he story, intel will have a hard time making it with these new chips and that's why stock is down 6%? >> until will have its work cut out for them. a the has always been a strong x 86 competitor rendering with qualcomm, a lot of competitors coming on the market in the next six months. stuart: intel may be coming out of your dow 30? expect that? >> until will come out of the dow 30 because of a weakness in the data center, they used to own the cbo market. amd has eaten their lunch on cpus, then you have nvidia's strength. until needs to focus on one or two segments. we away from intel as a stock because they are in so many segments. stuart: the news is grim i intel but thanks for joining us. always appreciate you being here. thousands of pro-hamas protesters flooded the streets of new york city. students at columbia university on high alert as protesters returned to campus. brian kilmeade on all of that next. when the sawdust settles and the engine roars the thing you care about is a jo

on each base and each place that you can't get from a drone alone, you have to have intel on the ground which shows that hizballah has managed to get that information on the ground from somewhere and that's their intel on the ground that's their strength, the israelis on the other hand they're banking on 57 states to give them until on lebanon, you have to understand lebanon is an open territory for everybody, you have spice from all agencies across the world operating from lebanon, and then you have the american against the british and the french giving intel also to the israelis, you have their spidrones flying over our territories, our space and then giving intel to the israelies as well, not only from the ground but also from the sky. the day of the pagers attacks we saw c130h planes both american and british flying across the coastline from lebanon and they left shortly before the explosion started happening. these are electronic warfare planes that do do jamming and create frequency among other things. they have the spy satellites that are stationed over. this region, so all this

not for giant companies like intel. but they want this money to be invested in small and mid sized companies. so there's definitely a lot of ideas out there. yeah, and we'll see you 2 years we'll see who's in government to if i a completely different set of cards, we will say parts going to say or, or you want to go to 119 and now we're children with cancer are among the most vulnerable in a country battered by political stalemate and economic crisis and conflict on the border with israel, the children's cancer center of living now, and they root is treated more than 5000 children in the last 2 decades. but as dw, as mohammed shared to discover, the hospital faces serious disruption as private donations dry up, some of you are is 9 years old. she's fighting cancer. so we have like all the other children here for set of negative i enjoy the activities and i draw and paint when i was coming here. do you want me to do you prefer it to be home? oh, i like it to you better than her. and yes, and she was for she was diagnosed

d and intel. in a private market, there are two main players. three risk which confidently filed to go public this fall and groc. it is backed by blackrock. nvidia declined to comment on this story. we're seeing shares down another 2% in after hours. >> all right. thank you. so, another strike potentially against nvidia. i mean, everybody wants nvidia chips for a rvenleason. if they don't have that lock, for whatever reason -- >> i think partially that's why it accelerated to the down side. but to have this resolved in the short term seems highly unlikely to me. >> this is such a joke. there's been a lot of stupid regulatory stuff that's looking at tech right now. i mean, there is no competition. so they have like all the products. you know what i mean? and also, there is so much demand. they can charge what they want to charge. i mean, at the end of the day, are we going to be in the free market capitalism? you know, it's one thing if they really have a lot of cheesy sort of sales practices and the like. it just doesn't seem like that is the ca

intel has a brand—new customer, is on is aws, the two wilco invest in a custom chip manufactured by intell then be used for artificial intelligence computer. news was part of several announcements by ceo after a company board meeting last week. in that meeting, intel also announced it was a pause in construction at the polish factory for two years to grievances, including the push to get workers back in the office. boeing has introduced immediate spending freezes and says it may have to lay off staff temporarily to keep costs down. this comes as the company deals with the impact of a strike involving some 30,000 workers. boeing has now asked its suppliers to suspend deliveries of parts for the 737 max, 777 and 767 freighter aircraft, which are all built in factories directly affected by the shutdown. intel has a brand—new customer, is on is aws, the two wilco invest in a custom chip manufactured by something that is totally insignificant and a very little value, but if you are actually doing something that is significant and of value, you are going to be controlled. the outcomes will be c

i think with intel everyone views intel's problems as very intel-specific.ther it's telling you about intel's struggles with manufacturing, chip design. some of the execution issues that they've had and part of the problem that intel has is a lot of these issues are expected to get resolved in the late 2025-2026 timeframe as some of their new processes come out. so it's not even something that they can fix any time in the near future. >> so are you saying, matt, nothing about the narrative, the very bullish narrative that's been driving these stocks alliary long has really changed? >> i don't think so. so, i mean, i think there's -- there's been an ai trade that's been driving all these stocks. we just had nvidia come off a quarter where they grew by $4 billi billion sequentially. they drive for another 2.5 billion in growth all tied to ai. each quarter they left themselves a proxy for ai. no. i think at this point there's not a whole lot of evidence that we're not continuing to see investment in ai, and i think you have next year there is a real potential t

intel has so far declined to comment on the approach.ly attract the attention of anti—trust regulators in several markets. joining me now is malcolm penn, chief executive of future horizons. hello to you. good morning. what do _ hello to you. good morning. what do you _ hello to you. good morning. what do you think _ hello to you. good morning. what do you think about - hello to you. good morning. l what do you think about these reports to say that a deal could be in the making? it really is a riches to rags saga,it really is a riches to rags saga, it started a few years ago and went into a loss leadership and handed over the button to tsmc and allow them to the ahead from a technology and if you lose at the technology race and give up on that, then it really does put you back on the bad setting there, so i think they were going through this period of trying to recapture the lead. this is a longtime scale, takes a long time to do that, and they are ambitious to do so which requires good people and a lot of luck as well and then suddenly

. >> quick break qualcomm making a bid for intel, potentially game changing takeover you are watchingmaria" live on "fox business" stay with us. . ♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month. maria: intel a takeover target "fox business" kelly o'grady with details. >> good morning looks like a lot of interest in intel so qualcomm reportedly approached company about a possible friendly takeover, and a cash over 5 billion dollars chipmaker on downward spiral stock dropped over 54% company announce to do lay off over 15,000 employees ceo on mystic can turn it around the. >> now apollo report indicates confidence in chipmaker ability to right ship but nothing is final if qualcomm were to buy it would face a number of challenges, price a big one as of friday intel market count roughly 93 billion qualcomm stood 188 billion biggest tech deal microsoft buying activision, so 69 billion deal would face antitrust

but i think you come back and say, intel, we still have the halo that intel's great, but it isn't.ut it's bad for the semiconductor business if they get in big trouble. >> the story today is about intel's manufacturing business and this reuters piece about a broadcom test that did not satisfy. >> well, look, i mean, intel is just a shadow of its former self, but you have a ceo who's a proselytizer, and all he does is say, look, we've done phase one of the restructuring. really? how about this bloomberg piece about the idea that perhaps they're going to be in big trouble when it comes to the chips act and maybe the government screwed up? i don't know, but i would say that intel's balance sheet, if you take a look at intel's balance sheet, people don't understand. i tried to get some numbers for intel's balance sheet. i know we're going on too long about intel. >> we talked about this yesterday. >> so, they have free cash flow minus $12 billion. now, minus. i want people to know that's not positive. minus 12.5 capex, and then they have -- they've got a gigantic just regular burn, so

shares of intel up over 6.5%.ntel will turn the foundry business into the independent unit with the ability to raise outside capital. sources tell cnbc it might spin off that business as a public company. in an effort to cut costs and raise cash, it is selling the programmable chip business. intel will provide custom chips for amazon a.i. and it is awarding additional $3 billion under the chips act. pat gelsinger joined "closing bell" last night on the future of the company. >> the foundry subsidiary. agreeing and seeing the great progress we've done on the cost measures to allow us to finish the journey we started three and a half years ago and the financial wherewithal and balance sheet that allows us to finish what we started. >> this morning, we are watching shares of microsoft. you see the shares up 1.5% after it raised the quarterly dividend by 83 cents a share and authorizing a buyback of $63 billion. that coming on the same way that it announced features on copilot. intel and microsoft giving the board a l

chipmaker, kelly o'grady has more. >> this is welcome news for intel giving over the recent strugglesthe private equity firm apollo offered a 5 billion-dollar equity investment in the chipmaker and that's on the heels of qualcomm approach the company about a possible friendly takeover. intel has been on a downward spiral, the stock instructor for 50% year to date in the company announced intends to lay off over 50000 employees, the ceos optimistic for a trade robert is playing catch-up after missing out on a boom, it's interesting the apollo reports indicate confidence in the chipmaker's ability to right the ship, it would not be the first time they were together by the way the pe firm invested 11 billion and the company's ireland manufacturing facility earlier this year there is an existing relationship now astringent qualcomm if they were to inquire qualcomm they would face a number of challenges price being a big one. as of 11:00 a.m. today it could have changed intel's market cap was 94 billion qualcomm stood at 186 billion, that would be the biggest tech deal ever by far and the

here your thoughts if not qualcomm, what for intel?if you have to support those investments, don't see a deal getting done with cash that doesn't drive leverage to ub sustainable levels. what do you do with them? >> they are losing $12 billion a year. >> you scrap them and sell the tools for whatever they are worth. i don't think that's a politically viable situation. you'd have to scrap the entire road map. long story short, they have enough issues. why would they be the one to make the issues better. >> let's get your take oven whether a deal is plauzable to agree with stacey or not. and number two, the question of the fabs, isn't that what the chips act and the government says they want? >> i agree with stacey. this is not a probable deal. i think i said it in many ways. i don't see how this works. i do think there's a bit of darkest before dawn going on with intel. they had their darkest moemt. the rumors were somewhat -- they got a turned around last week when you got the aws win, the $3 billion from the dod. when they did make th

i know it is a big win but it is also a win that requires intel to spend a fortune on equipment. build out everything that it wants to build, or even that is committed to build, that is why the best news we got wasn't the aws news but it was the intel suspension of its plan to build out gigantic plants in germany, as much as 30 billion euros, and poland that will only cost 4.6 billion euros, this is causing great turmoil, since they committed ,10 billion to intel to get it up and running. it was a linchpin of germany's attempt to keep supporting job growth. now that otto has cooled. these actions are taken to buy time, to staunch the bleeding. along with the three billion- dollar pentagon contract it just got, helped take some of the pressure off of the until now, as a moment to try to right the ship and to breathe, and time is what they really need. until today, intel had no idea how to cut cost while spending heavily on incredibly expensive semiconductor factories all over the world. the about-face in europe lets them continue their aggressive buildout in the u.s., where the co

but intel's -- factories. but intel's struggling a little bit here.ord that qualcomm recently made a bid for taking it over. apollo wants to invest in it in exchange for equity. what happens here? >> well, intel's in a tough spot, right? when company, especially high-tech companies middle age out, this is what happened here, basically -- liz: ooh, middle age out. >> corps sorry about that. [laughter] the top of the company is really good, the bottom doesn't know what to do, they're mired in bureaucracy, so they have no innovation. everybody was focused on revenues and shareholder value instead of making the n. ses on innovation. so what happens is it's most likely they're going to separate the foundry business from the design part of the business, and apollo will come in and has a long-range kind of view i in terms of how they invest, they're probably the right investor to think about a 10-year plan for intel as opposed to a 5 year plan that pat has to deal with. liz: right now we are leading, amd, nvidia, on semiconduct canner, micron. you could name

biden/harris sold it to prop up the chips industry, look at intel, intel lost 60% in a year. kevin o'leary was on, the ironing of the chips act not doing badly for a lot of chips, here's what kevin said. >> given tell billions of dollars they try to decide they are winners 20 years from now, better way to have done this is forget about chips. tell investors like me if you invest in this sector specifically chip manufacturing it is a tax holiday for 20 years so i am ready to put capital to work and i will choose the winners and losers in management. intel management missed the boat on mobile devices decades ago. they are losers. david: doesn't this prove that industrial policy directed by the government doesn't work? >> tells the biggest beneficiary of the chips act, intel was nvidia in the 1990s and they are playing catch-up and a net loss, it is unclear if they will capitalize on these grants and loans we are getting, they are behind the 8 ball. stuart: thank you for coming in. another example of customers bringing back dollar tree's stock diving after a big earnings miss. k

intel was one of the most so my connector company, scan better the 56% year to date.esting story around intel. >> if you are not nimble, i don't care what industry you are in but if you are not nimble to keep up with trends and themes as they change and come in and out of favor eventually you will become obsolete. unfortunately for intel that is the path that they're headed down if you look at the challenges that they're facing right now and when you look at all the challenges, they are talking about $10 billion of cost that they have to cut it at the same point time when every other chipmaker out there is trying to figure out how to make sure customers are not unhappy because demand is so high in they need to figure out how to get the chips in their hand, unfortunately for intel they decided to dig their heels in and completely missed the a.i. opportunity. maria: would you buy semiconductors now that were hearing a chatter of potential deals. >> i do like semiconductors, nvidia is one of the biggest one, amd is a big one, a.i. autonomous driving, data center, gaming,

intel. got new reports that intel qualified for grants of $3.5 billion to make chips for the federal government. merck up .75%. >>> it is time for the big money movers. the three big stock stories of the morning. pfizer shows positive results in the mid stage trial. pfizer saw patients saw body weight gain and quality of life. it could be the first treatment approved here in the u.s. specifically for this condition. shares of pfizer up .50%. one of the dow gainers is disney and directv to agreement. that brings disney and other channels back to the provider. stations went dark after the two sides could not come to terms on fees. that left 11 million customers without the u.s. open and monday night ootball. shares of disney are up .75%. and another dow gainer is intel. qualifying for $3.5 billion in federal government grants as they will make chips with military and intelligence applications. shares of intel up 3.5%. >>> as we head to break, the fed's rate cut certainty and magnificent seven

like, intel needs money to execute on this ambitious plan has put together.eally have that amount of money from its operations right now. it is having to scale back some of those ambitions and it is also looking, you know, at parts of what it has and whether those can be monetized in some way, or find a better value in some way. mobileye would obviously be part of that and it has already made moves in that direction, selling a stake in the ipo. the important point here is if you look at where mobileye is relative to what intel paid, which is considerably lower, wouldn't they fancy dumping it right now unless you could find an individual seller that would pay better? ed: there are some basics we should go over. intel has been over a period of time chipping away at its stake in mobileye anyway. our understanding from sources is that intel is looking at a lot of different things and i think on the mobileye side their board has to get together at some point and brace for something that might potentially happen. ian: yeah. i mean, again, putting mobileye in the ge

to help companies like intel to create more chips.w deadly government control industrial policy can be to business? >> it is not a good idea. the chips and science act looking for dollars for 62% of the economy. not a dime. we did meet with staffers in washington. i thank you for giving me that opportunity. when they give intel billions of dollars, 20 years from now, better way to have done this, tell investors if you invest in this sector, chip manufacturing, a tax holiday for 20 years. i am ready for capital to work and i will choose the winners and losers in management. intel management missed the boat on mobile devices decades ago. everybody knows that. i would never invest in them. i invest in the amds of the world and others and give them my money if given a tax incentive. that is how you implement policy. that was bad policy. david: isn't it ironic they are there for the little guys and small businesses when 200 $1 billion you just mentioned went to the huge companies and they are failing. >> not a dime and that act for compani

lauren: looking at intel, $22 a share. when did that happen, they are in a multi-year multibillion-dollar deal with intel to make ai chips for amazon's aws, the number one cloud computing network, stamp of approval for intel's money-losing business. intel plans to turn that contract business into an independent unit with its own board and potential to raise outside capital. the ceo is expected to update investors on his turnaround plan. a lot of folks would say it gets revived today. not many are convinced. if you look at 45 analysts that cover the stock just three say to buy it. look at the other chipmakers if we can move this screen. the question for intel can they woo potential customers like broad.com, amd to follow amazon's path and become customers. than there is microsoft. look at the stock, 435, 1%, other billions and billions and billions in a i spending, more for shareholders. their new quarterly payout, $0.83 a share up from $0.83 a share up from $0.75. is a huge increase, microsoft also announced a $60 billion

received emerge from the chips act, intel ceo pat gelsinger expected to update the stalled turnaroundlater this month the stock is up nicely, charging $20 a share in the stock is down 60% this year. ashley: thank you. on friday ever core isi mark mahaney gave google a price market of 225 it is currently 156, was it lower? >> he brought it from 225 down to 200 but he kept the outperform the vibrating the reason he lowered the price, he said the market really is not taking into consideration the worst case scenario, the remedy that could happen because the d.o.j. said google is a monopoly in the remedy would be prohibiting google from bidding on search contracts which means they pay apple billions and billions of dollars a year to be the default search engine, if the d.o.j. says that google cannot do that they are losing market share extensively in the bread-and-butter business it keeps outperform rating but it takes it down to 200. >> let's change subjects how many workers is tire engine target hiring for the holidays. >> 100,000, sales are expected to slow the most in six years accord